Abstract The main objective of this study was to improve the conceptual understanding of students by using rectangular area model instruction, to teach multiplication in grade 3rd at EweketFana primary school. This study uses quasi-experimental design-based research approach and the data was collected through both quantitative and qualitative instrument. The population of this study was 3rd grade students at EweketFana primary school in Bhair Dar town. Their total number is 213 students. Among those students the participant of this study was only two sections out of four sections which were selected by simple random sampling technique. The numbers of students were 100 (52 male and 48 female). Those two group students were given a treatment for two weeks. The experimental group students taught by rectangular area model approach and control group students were taught by traditional teaching method approach for teaching multiplication of whole number. The data collecting instruments were pre-test, post-test, class room observation and interview. The data collected through quantitative method was analyzed by independent sample t-test. The qualitative data was analyzed by narrated using word statement. As a result, the finding of this study showed that the experimental group students taught by rectangular area model approach developedbetter conceptual understanding of multiplication than control group students that were taught by traditional teaching method approach. Key words: Area model, traditional teaching method, conceptual understanding, multiplication